Oops, I DID IT AGAIN
Happy Monday, VWAPians!
The Warlock – Kenny Glick – here.
Oops, I did it again.
I CALLED THE CRASH.
During Friday’s Warlock’s World live stream, I noticed even though the market had already moved to the downside, there was plenty of room for more selling.
How did I come to this conclusion?
Well first, I had time to look after my Warlock’s World community and I cashed in on trades in Peabody Energy (BTU), Cleveland Cliffs (CLF), Snapchat (SNAP), and Vallon Pharmaceuticals (VLON).
Look at those names – a couple stocks reporting earnings, an old reliable that I often revisit, and a crazy biotech.
Just like every other day.
But the real winner was taking a look at the market at large and seeing potential for MASSIVE gains by playing the downside.
And what tipped me off to make this potential downside move come true?
Our old friend, the Proshares Ultra VIX Short Term Futures ETF (UVXY).
There’s a bunch of technical gobbledegook for what UVXY actually does…but I like to keep it simple…
If UVXY is showing strength, there most likely will be more selling in the market in the short term.
And on Friday, I noticed that UVXY was staying strong.
The market opened green and had been hanging around after selling off on Thursday…
But my scanners were largely red and UVXY was hanging around.
UVXY showing strength on Friday
Now you know I don’t like call spreads…
But I mentioned that I was looking at the UVXY call spread of buying the $13.50 call for $0.45 and selling the $14.50 call for $0.11.
That’s a $1 spread for $0.34, or $34.
I also mentioned that I was looking at lottery options on Invesco QQQ Trust (QQQ).
At the time, the QQQ $330 puts were $1.36 – or $136 – and the $329 puts were $1 – or $100 – apiece.
Well my instincts (or as 8-Baller calls it, my “preternatural feel”) for the market were correct, as UVXY took off like a rocket to close the day.
QQQ tanked. HARD.
That UVXY call spread went to the maximum value of $100.
And those QQQ options?
The $330 puts closed at $6.50 – or $650 – EACH.
The $329 puts closed at $5.80 – or $580 – EACH.
Even just ONE $329 put – which would have cost $100 – would have returned $480 in profit.
That’s a nearly 6 times return on the $330 puts and a nearly 5 times return on the $329 puts!
This is after my Warlock’s World community had cash in hand from our other BANGER trades.
It’s the best time in the world to be a VWAPian.
Especially as earnings season ramps into its BIGGEST. WEEK. YET.
Just look at some of the name reporting this week:
Earnings for the week of April 25
That’s a murderer’s row of HUGE names.
And it just so happens that THIS WEEK is when I kick off my bonus LIFETIME Warlock’s World sessions based on earnings.
This is where I set up my LIFETIME Warlock’s World members with the roadmap of how to tackle trades to the upside and the downside of stocks reporting earnings.
And it’s all getting started on TUESDAY.
There’s still time to join me, Blanche.
You’re not going to want to get left watching on the sidelines as my Warlock’s World community and I catch the biggest moves from some of the biggest names on the market…
And you don’t want to miss when I call the next crash.
So join my Warlock’s World NOW, and thank me later.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
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April 25 2022
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